John Sparks

The Bank of England lent £100m to its Icelandic counterpart this week, as efforts continue to save British depositors' money. At present, anyone who has money in a UK bank or building society, or with a credit union, will be paid up to £50,000 if the organisation goes bust. That figure is doubled to £100,000 for joint accounts. But if you have money in an offshore account in the Channel Islands, none of your money is guaranteed by the financial services compensation scheme if the institution fails. The Isle of Man has its own compensation scheme which, like the rest of the UK, is guaranteed up to £50,000. Many depositors invested their money in the Channel Islands or the Isle of Man with Icelandic banks for the attractive rates of interest and tax breaks. It is not clear how much money they will get back as the banks have gone into administration.

business and money,